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  3. 1. a disadvantage of the rate of return method is

1. A disadvantage of the rate of return method is that it a. considers the...

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Accounting

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1. A disadvantage of the rate of return method is that it a. considers the cash flow of the investment. b. considers the time value of money. c. ranks proposals based on the cash flows over their complete useful life. d. assumes that the cash received from a proposal can be reinvested at the internal rate of return. 2. If we assume that for Panera Bread company-owned stores the operating profit and depreciation will remain unchanged for the next 15 years and that the operating profit plus depreciation approximates annual net cash flows and the investment residual value will be zero (O), what will be the average rate of return be? a. 096 b. 2.88% c. 54% d. 34%

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